8th ADB Business Opportunities Fair

Procurement of Works and Goods

Presentation by
Galiya Ismakova, Principal
Procurement Specialist, OSFMD

22 March 2017
Procurement of Works and Goods
Why pursue ADB funded Goods
and Works Contracts?
ADBs Procurement Guidelines
How to identify Opportunities for
Goods and Works Contracts
Bidding Dos and Donts
 Why pursue ADB funded Goods and Works
Contracts?

Significant budgets for goods and works

Gateway to new opportunities in fast growing emerging economies

across multiple sectors

Funds are available

Internationally accepted procurement procedures

Risks related to transparency, fairness and integrity of procurement

activities mitigated through ADB oversight

Support a worthy development mission

Regional Multi-lateral Development Bank
with HQ in Manila, Philippines
 Asian Development Bank
ADB is an international development finance
institution whose mission is to help its
developing member countries reduce poverty
and improve the quality of life of their people.
Established in 1966, ADB has committed
$231.53 billion in loans to the vision of an
Asia and Pacific region free of poverty.
 Areas of Focus and Results
ADB operations are designed to support the three
complementary agendas of inclusive economic
growth, environmentally sustainable growth, and
regional integration. ADB employs its limited resources
in its areas of comparative strengththe core areas
of:
1. Infrastructure (water, energy, transport, urban
development, information and communications
technology)
2. Environment
3. Regional Cooperation and Integration
4. Finance Sector Development
5. Education
 Other areas of assistance
ADB also operates on a limited scale in
other areas, including
Health
Agriculture and Natural Resources
Public Sector Management
 How much assistance does ADB provide?

ADB operations reached an all-time high of $31.5

billion in 2016, a 17% increase from $26.9 billion in
2015.
ADB's approvals of loans and grants for sovereign and
nonsovereign operations reached $17.5 billion - a 9%
increase from $16.0 billion in 2015. Non-concessional
loans from ADBs Ordinary Capital Resources (OCR)
amounted to $14.4 billion. Concessional loans and
grants from the Asian Development Fund (ADF)
reached $3.1 billion, with $2.6 billion going to loans
and $518 million to grants. Technical assistance
increased by around 20% to $170 million from 2015s
$141 million figure.
ADB Project Cycle and Business
Opportunities

Staff consultants
PPTA consultants

Loan/ Grant consultants

Suppliers/ Contractors
Staff consultants
Procurement of Goods and Works
ADB Procurement
Guidelines (2015)

ADB Procurement
Reform ( 2017)
 ADB Procurement Guidelines -
Sources

ADB Commercia
Charter l Practices

Other ADB
MDBs Board Policy

ADB
Experience
 ADB Business Opportunities

ADB Procurement

ADB Oversight
The Borrower (Executing Agency) is
responsible for procurement of goods and
works
ADB reviews the procurement activities of
EAs to ensure compliance with ADB
Guidelines

12
 Overarching Principles
Economy and efficiency
Transparency
Fairness
Promotion of domestic industries
Eligible source of goods and works

New Policy additions

Value for Money and Fitness for Purpose
Quality
International Competitive Bidding
Default Procurement Method
International Advertising

Standard Bidding Documents

Public Bid Opening

Bid Evaluation

Publication of Contract Award

 Other Procurement Methods
Limited International Bidding
National Competitive Bidding
Shopping
Direct Contracting
Force Account
Community Participation in Procurement
 Open Competitive Bidding

OCB will replace ICB and NCB

Possible application of standstill period
Improved complaints handling mechanism
Use of ADB Standard Bidding
Documents
Identifying Opportunities for
Goods and Works Contracts
 Identifying Opportunities for
Goods and Works
Country Partnership Strategy
Country Operations Business Plan

Procurement Plans
Specific Procurement notices
Invitation for Prequalification
Invitation for Bids
Hop-on Opportunities
Prequalified Contractors
Contracts Awarded
Country Partnership Strategy
Country Operations
Business Plan
 Finding ADB Business Opportunities
https://www.adb.org/site/business-opportunities/operational-
procurement/goods-services/notices-current
 Procurement Plans
https://www.adb.org/site/business-opportunities/operational-procurement/goods-services-
pp
Procurement Hop-on Opportunities -
Prequalified Firms
Advance Procurement Action
Link to e-Alerts at bottom of
adb.org Home Page
ADB alerts Step 1.
ADB alerts Step 2.
ADB alerts Step 3.
Institutional Procurement
Institutional Procurement Notices
Institutional Procurement resources

https://www.adb.org/site/business-
opportunities/resources
Institutional Supplier Registration
Supplier Management System

Only applicable for Institutional

procurement (not for Procurement
under ADB loans/ grants)
Bidding Dos and Donts
 Bidding Dos
Leverage your strengths
Ability to operate in countries that do not generate significant bidder interest
Afghanistan
Cambodia
Pakistan
Pacific
Experience in country and with executing agency
Access to information regarding local joint venture partners and
subcontractors
Access to information regarding availability of key inputs
Materials
Labor
Equipment
 Bidding Dos
Seek official clarification in timely manner
BIDDING DOCUMENT POTENTIAL ISSUES
Bid Conditions Unreasonable bid preparation period
Qualification Criteria Unclear which entity must comply with
qualification criteria
Ambiguous criteria
Restrictive criteria
Requirements Incomplete, unclear or restrictive requirements
Contract Conditions Unreasonable contract completion period
Unbalanced risk allocation

Contact ADB if executing agency fails to

respond promptly or there is a complaint
against executing agency
 Bidding Dos
Do not submit conditional bid
Submit bid within the stipulated deadline
Ensure following steps are taken during bid
opening
All relevant prices are read out
All discounts are read out
Presence and amount of bid security is read out
No envelope remains unopened
The record is signed by all bidders present and by the buyer

Be Aware of Possible Bid Extension

 Bidding Dos
Quality control check your bid!!!
Amount, validity and text of Bid Security
Signatures and power of attorney
Joint venture agreement enclosed
References enclosed
Discounts in covering letter or appropriate place as specified in the
bidding document
Marking of envelopes as appropriate

Seek debriefing if you are not successful

Unsuccessful bidders may request debriefing from executing agency. If
they are not satisfied with the explanation given, they may contact ADB
directly.
 Bidding Donts
No Bid Security
Insufficient Amount of Bid Security
Lack of Supporting Documents
Incomplete Bids
Partial Quantities
Absence of test reports if required
Bids not signed
Conflict of interest
 LinkedIn Group
ADB Suppliers network 598 members
(as of 2 March 2017)
https://www.linkedin.com/groups/37965
32
 For more infromation
Www.Adb.Org
Http://www.Adb.Org/procurement/default.Asp
Http://www.Adb.Org/procurement/bidding-procedures.Asp
Http://www.Adb.Org/procurement/prequalification-bid-
documents.Asp
Http://www.Adb.Org/documents/manuals/PAI/default.Asp
Http://www.Adb.Org/documents/manuals/operations/
Http://www.Adb.Org/documents/manuals/consulting-services-
operations-manual/CSOM.Pdf
Http://www.Adb.Org/opportunities/institutionalprocurement/del
-pro.Asp
Http://www.Adb.Org/opportunities/institutionalprocurement/su
p-reg.Asp